Origin Of DAMAC Properties

In 2002, Damac Properties emerged. It was into top-end developments in Dubai. Hussain Sajwani marketed these aggressively. The key here was making off-plan sales. This was his business model, and it was highly successful.

Hussain Sajwani was also able to see the property crash that came in 2008. This was when sales dropped dramatically. He took fast action. He decided to cut costs as well as to preserve cash. This way the DAMAC properties had ample cash to protect it.

In fact, DAMAC group was able to get through this crisis as they could handle cash carefully. They were able to control costs. They also reined in some projects.

The business model of DAMAC properties is unique and highly successful. There are no debts being held for land. Hussain Sajwani pays completely at the beginning only. Next, there are independent escrow accounts. This means that cash will not get transferred from one account to another. Hence each development needs to be sustainable and able to support itself.

The cash reserves are retained. These are placed either in fixed deposits or several government bonds. Hence construction will not suffer as there are sufficient funds. So even if the market turns, the construction schedule is not disturbed.

Hence DAMAC property was launched at the right time. Now he is going to expand it as the market is showing signs of revival. He may even be thinking of getting things ready for his son to take over. All looks well for Hussain Sajwani as he goes ahead with his expansion plans.

One Reply to “Origin Of DAMAC Properties”

Having such a renowned expert in the person of Hussain Sajwani as the owner of a real estate company is good omen for business as he is a very calm, tactical business guru that i have great respect for. Using http://www.essayheaven.org/why-use-essay-writing/, the way he structures his ideas with such functionality made his company the DAMAC group to be able to with stand the financial crash of 2008 because he made proper plans such as having a reserve which i think some companies lacks.